Baby Diapers & Wipes Market In India

M.Mallyah INDA - USA Representative - India

Presentation Structure
Disposable Nonwovens Retails sales, Fabric

consumption and Value

Disposable Nonwovens Growth rate predictions Market potential of baby diapers and market share Growth driving and impeding factors for baby diapers Disposable wipes market and market share in India

Growth driving and impeding factors for wipes

Disposable wipes Global trends

Disposable Nonwovens - Retail Sales M $ Absorbent hygiene

Year Product Baby Diapers Training Pants Feminine Care Tampons Adult Incontinence Total 2002 14 0 56 <1 9 80 2007 38 Small 154 <1 20 213 2012 79 10 386 1 60 536 CAGR 02-07 21.4 NA 22.2 Low High 21.6 CAGR 07-12 15.6
Moderate

20.8 2-5 20-25 20.3

Source: India Nonwovens Outlook, INDA Ian Butler, India

Disposable NonwovensProduction M Units Absorbent Hygiene

Year Product Baby Diapers Training Pants Feminine Care Tampons Adult Incontinence Total 2002 57 0 950 <5 5 1017 2007 150 Small 2650 6 23 2829 2012 310 15 6680 14 70 7089 High 22.3 20-25 20.1 CAGR 02-07 21.4 NA 22.8 CAGR 07-12 15.6
Moderate

20.3

Source: India Nonwovens Outlook, INDA Ian Butler, India

Consumption of Nonwoven Fabrics In India (M $)

2007 Disposable Durables Total

2012

Growth Rate 17.9 12.0 12.7

29.9 64.9 184.1 325.0 214.0 390.0

Disposable Nonwovens Fabrics Value M$

Year Product 2007 (M$) 2012 (M$) CAGR

Baby Diapers
Training Pants Feminine Care Adult Incontinence Sub.Tot Absorbent Hygiene

5.5
0 8.9 1.7 16.1

11.3
0.3 22.4 5.3 39.3

15.6
NA 20.2 24.9 20.1

Wipes
Medical Other Total
Source: India Nonwovens Outlook, INDA Ian Butler, India

1.0
4.8 8.1 29.9

1.8
9.7 14.1 64.9

12.8
15.1 11.8 17.9

Others include Fabric softener substrate, Sorbants, courier envelopes, sterile / nonsterile packaging materials

Disposable Nonwovens Fabric Volume M,m

Year

Product
Baby Diapers Training Pants Feminine Care Adult Incontinence

2007 (Mm)
82 0 71 26

% Share
33 0 29 12

2012 (Mm)
169 5 177 79

% Share
30 1 32 14

Sub.Tot Absorb hygiene

Wipes Medical Other Total
Source: India Nonwovens Outlook, INDA Ian Butler, India

179
6 43 20 247

72.5
2.4 17.4 8.0 100

430
11 85 35 562

76.5
2.0 15.2 6.2 100

Volume of Nonwoven Fabrics in India (Tons)

Year (Tons) 2002 Disposables 3,300 2007 6,508 2008 7484

Durables Total

13,600 16,900

40,458 46,966

97,516 105000

Source: India Nonwovens Outlook, INDA Ian Butler, India

Market Potential For Baby Diaper In India

2007 Total Population ( Billion) Births ( Million) Total Infant Population ( Million) Potential Market Size For Diapers ( M) Estimated Diaper Consumption (M) Penetration (%) Ave Retail Price / Diaper US$ Retail Sales ( M$) 1.11 24.4 57.1 28213 150 0.5 0.255 38.3 2012 1.19 26.0 60.9 30080 310 1 0.255 79.1

Source INDA Estimates

Baby Diaper Market Share In India -07

Major Participants Sales M S Share % Brand Name Made in India X X X Nappies Snuggy Koochees Infantino Teddyy X X X X X Import

Kimberly Clark Proctor & Gamble Others Actifit Godrej Hygiene Wear Intl Infantino Nobel

20.7 9.2 8.1

50-55 20-25 20-25

Huggies Pampers

V-cintA Intl
Wipro Total
Source INDA Estimates

Lollas
Baby Soft 38.0 100 X

Growth Drivers for Baby Diapers

GDP Increase, Disposable Income & Std of living Increase in Literacy rate Awareness of Hygiene among lower middle class and country side women Increasing Working Women Population Reduction in Raw material particularly the high performance absorbent core Overall reduction in the cost per unit at the retail level Increase in retail outlets Mall Culture Marketing Drive by Multinationals in the country side

Nonwoven Consumption Rises as GDP per Capita Increases *

Kg/capita
4 3.5 3 2.5 2 1.5 1 0.5 0 $0 $10,000

Taiwan E. U.
Japan Korea Turkey Czech Rep. Latin America Trend Line

N. America

INDIA
$20,000 $30,000 $40,000 $50,000

* PPP in US$ equivalents

Source: INDA Estimates

Market Progression as Industry Develops

(kg per capita consumption)
2.5
Developed Industry

2 1.5 1 0.5 0
h Hig d lize ia str u I nd ic ex M o

Higher disposables Early Development Higher durables

a tin n rge A

il raz B

ia mb olo

Disposables Durables

Source: INDA Estimates

Production Capacity of Nonwoven Fabric India

(MT)

Type of Nonwoven Spunlace

Spunbond

Estimated Capacity 2002-3 Nil

9000

Capacity installed/under installation 2006-7 27500

39000

Needle punch
Chemical bonding / thermal bonding / stitch bonding Total

10000 3000
22000

20000 15000
101500

2007 Nonwoven Consumption By Diaper Component

(MT)

Component Top Sheet

Square Meters M m 21

Tons 370

Back Sheet
Barrier Leg Cuff Other Materials Total

21
8 32 82

370
150 590 1480

Growth Impeding Factors for Baby Diapers

Launderable Cloth Nappies, Nappy pads and Liners at cheaper price than Diapers High cost of diapers Rs 9 to12 per diaper Cost Conscious parents using cloth diapers in the day and Nonwoven diapers in the night giving both baby and parents the option for peaceful sleep Cultural aspects Cloth diapers are often viewed as the better choice, cooler in summer and does not cause rashes A misconception Kimberly Clark began to address some of the misconceptions by educating mothers through their pediatrician program about the benefits of disposable diapers and the importance of dry skin with regard to babys health

Disposable Wipes Market in India

Wipes market in India is in embryonic stage. Retail statistics are unreliable due to its small size INDA estimates US$ 9 M as the total value of the fabric used by wipes Industry in 2007 Nonwoven materials consumed in 2007 by disposable wipes including imports is around 6M m equivalent of 300 tons or 0.3% Wipes market grows at around 12% per annum Baby wipes market account for 80-85% of the total wipes market Baby wipes market expand at a much higher rate at 20% per annum due to the presence of multinationals and their marketing drive INDA estimates the total retail sales of wipes at US$ 16M by 2012 with a consumption of 11 M m fabric or 550 tons

Factors impeding wipes market growth in India

Cultural ethic to use cotton Launderable wipes

Not in favor as they are disposable Waste of

money to use a wipe once & throw it. Expensive around Rs 2 to 3 per wipe Most disposable wipes are imported from Malaysia, Indonesia & China Till last year, most of the spunlace material used for wipes was imported Household wipes and Industrial wipes are yet to pick up Many local & regional players without a manufacturing base and marketing drive

Growth factors driving wipes market in India

Two new spunlace manufacturing units in india

and more to join More convertors are getting into the market making wipes available at affordable prices. With fall in oil prices, fibre prices are bound to fall making the manufacturing cost cheaper Growth in organized retail, increase in disposable income and working women or urban populace Household & Industrial wipes will hit the market soon

Major Participants in disposable wipes market in India

Major Participants Kimberly Clark Proctor & Gamble Anakku Godrej Grasim Nobel Hygiene Brand Name Huggies Pampers Anakku Snuggy Kara Teddyy X X X Made in India Import X X X

Premier Aryco
Patterson Intl Tainwala Personal care Pristine Care
Source INDA Estimates

Teddy Soft
Soft Love Fresh ones Clarus

X
X X X

Disposable Wipes Global trends

High Consumption in North America, Europe, Japan and other high GDP nations. America consumes 14% and Europe 16% of their Nonwoven fabric production in wipes Strong Growth in South America, Eastern Europe, Middle East and China as GDP grows In Asia, Japan uses a high volume of wipes at 62787 tons or 17%, China produces more volume at 92000 tons or 8% and Korea 6912 tons or 3.2% First market developed globally is baby wipes Import & then production Annual Growth rate is 15% per year Household wipes constitutes 46%, baby wipes 31% and personal wipes 23% of the total wipe production

What Drove the Consumer Market Globally? 1997-2007

New Household Products

Electrostatic and Floor Cleaning (Swiffer -P&G, Pledge SC Johnson, Scotch Brite-3M) Swiffer is a billion dollar product line for Procter & Gamble worldwide. Disinfecting / Hard Surface wipes by Clorox, Lysol, Scotch Brite. This is a half billion dollar market in N.A. Furniture polishing; Window cleaning (Pledge and Windex by SC Johnson) Automotive interior cleaning, tire wipes, bug removal, leather protection, waxing

What Drove the Consumer Market Globally? 1997-2007

New Household Products

Electrostatic and Floor Cleaning (Swiffer -P&G, Pledge SC Johnson, Scotch Brite-3M) Swiffer is a billion dollar product line for Procter & Gamble worldwide. Disinfecting / Hard Surface wipes by Clorox, Lysol, Scotch Brite. This is a half billion dollar market in N.A. Furniture polishing; Window cleaning (Pledge and Windex by SC Johnson) Automotive interior cleaning, tire wipes, bug removal, leather protection, waxing

What Drove the Consumer Market Globally? 1997-2007

New Personal Products

Feminine Care: Always, Fresh n Up, Playtex Cosmetic/Facial Cleaners: Biore, Neutrogena, Oil of Olay, Ponds Dove These are relatively expensive (20-25 cents each) Toilet Wipes: Charmin, Cottonelle, Wet Ones, Fresh n Up Bath, General Purpose, Incontinence: Comfort Personal, Splash n Go, Wet Ones

What Drove the Consumer Market Globally? 1997-2007

Baby Wipes

Was the first market to have considerable volume Volume grew during the past decade as product was used for more than just wiping babies. Used in many other areas and led to the Personal and Household wipes growth Volume now: static
New Product

Flushable Training wipes

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